Spansion Posts Profit In Q4; Q1 Outlook Disappoints; Shares Fall

1/29/2013 11:57 PM ET

Flash memory chips maker Spansion Inc. (CODE) Tuesday reported a profit for the fourth quarter, compared to a loss last year, aided by lower costs and the absence of some charges. However, the stock fell nearly 9 percent in afterhours trading, as the company issued first-quarter profit forecast well below analysts' expectations.

Net income for the quarter was $6.9 million or $0.11 per share, compared to a net loss of $74.4 million or $1.25 per share for the year-ago quarter.

Excluding items, earnings were $0.34 per share, while it stood at a loss per share of $0.68 last year.

On average, six analysts polled by Thomson Reuters expected earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales rose to $224.0 million from the previous year's $220.02 million. Analysts expected revenues of $234.40 million for the quarter.

Gross margin was 32.1 percent compared to 1 percent last year. Cost of sales declined to $152.05 million from $217.81 million in the prior year. Further, the prior year had restructuring charges of $12.3 million.

Looking ahead to the first quarter, the company expects to report between a loss of $0.05 per share and a profit of $0.06 per share. Net sales are estimated to be in the range of $180 million to $205 million.

Analysts currently expect the company to earn $0.27 per share on revenue of $225.84 million for the first quarter.

CODE settled up 0.7 percent at $13.17 on Tuesday, but declined almost 9 percent in the extended trade to $11.99.

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